株探米国株
日本語 英語
エドガーで原本を確認する
0001468174false00014681742022-02-162022-02-16

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 16, 2023
 
HYATT HOTELS CORPORATION
(Exact Name of Registrant as Specified in Charter)
 
Delaware   001-34521   20-1480589
(State or Other Jurisdiction
of Incorporation)		   (Commission
File Number)		   (IRS Employer
Identification No.)
150 North Riverside Plaza  
8th Floor, Chicago, Illinois   60606
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (312) 750-1234

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Class A Common Stock, $0.01 par value H New York Stock Exchange
Former Name or Former Address, if Changed Since Last Report: Not Applicable
 
 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 ☐



Item 2.02. Results of Operations and Financial Condition.
    On February 16, 2023, Hyatt Hotels Corporation (the "Company") issued a press release announcing its results for its quarter and fiscal year ended December 31, 2022. The full text of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
    The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
On February 16, 2023, the Company published a supplemental investor presentation which may be accessed through the Company’s investor relations website. A copy of the supplemental presentation is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.
The information furnished under Item 7.01 and Exhibit 99.2 in this Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
     (d) Exhibits.
99.1 
99.2 
101  Interactive Data File - XBRL tags are embedded within the Inline XBRL document
104  Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Hyatt Hotels Corporation
Date: February 16, 2023   By: /s/ Joan Bottarini
  Joan Bottarini
  Executive Vice President, Chief Financial Officer

 


EX-99.1 2 q42022earningsrelease.htm PRESS RELEASE Document
Exhibit 99.1
hy_l001b-rxcolorxcmyk2.jpg
HYATT REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS
Record Cash Flow from Operations of $674M; Net Rooms Growth of 6.7% Exceeds Expectations
CHICAGO (February 16, 2023) - Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported fourth quarter and full year 2022 financial results. Highlights include:
•Net income was $294 million in the fourth quarter and $455 million for the full year of 2022. Adjusted net income was $278 million in the fourth quarter and $365 million for the full year of 2022. Net income in the fourth quarter and for the full year of 2022 includes a non-cash benefit of $250 million due to the release of a valuation allowance on U.S. federal and state deferred taxes.
•Diluted EPS was $2.69 in the fourth quarter and $4.09 for the full year of 2022. Adjusted Diluted EPS was $2.55 in the fourth quarter and $3.28 for the full year of 2022.
•Adjusted EBITDA was $232 million in the fourth quarter and $908 million for the full year of 2022. Apple Leisure Group ("ALG") contributed $43 million of Adjusted EBITDA in the fourth quarter and $231 million for the full year of 2022.
◦Adjusted EBITDA does not include ALG's Net Deferrals of $28 million and $94 million, and Net Financed Contracts of $15 million and $63 million, in the fourth quarter and for the full year of 2022, respectively.
•Comparable system-wide RevPAR increased 34.8% in the fourth quarter and 60.2% for the full year of 2022, compared to 2021.
•Comparable owned and leased hotels RevPAR increased 41.7% in the fourth quarter and 87.6% for the full year of 2022, compared to 2021. Comparable owned and leased hotels operating margin improved to 27.9% in the fourth quarter and to 27.1% for the full year of 2022.
•All-inclusive Net Package RevPAR was $190.64 in the fourth quarter and $187.28 for the full year of 2022.
•Net Rooms Growth was 6.7% for the full year of 2022.
•Pipeline of executed management or franchise contracts was approximately 117,000 rooms, inclusive of ALG's pipeline contribution of 8,000 rooms.
•Share repurchase activity was approximately 1.15 million shares repurchased for $106 million in the fourth quarter and approximately 4.23 million shares repurchased for $369 million for the full year of 2022.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "Our results in the fourth quarter mark the completion of a truly transformative year. We generated a record level of fees and free cash flow while leading the industry in organic growth for a sixth consecutive year. This outcome is a direct result of successfully executing on our asset-light growth strategy. We continue to experience positive momentum in the markets in which we operate and are optimistic about the year ahead."
Refer to the tables beginning on page A - 15 of the schedules for a summary of special items impacting Adjusted net income (loss) and Adjusted diluted earnings (losses) per share in the three months and year ended December 31, 2022 and December 31, 2021.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page A - 12.

Operational Update
Comparable system-wide RevPAR increased 2.4% in the fourth quarter and declined 6.1% for the full year of 2022, compared to the same periods in 2019. Excluding Greater China, system-wide RevPAR increased 6.6% in the fourth quarter and declined 2.5% for the full year of 2022, compared to the same periods in 2019. In the fourth quarter of 2022, the RevPAR recovery continued to be powered by strong pricing with leisure transient and group average rates up 19% and 15% compared to 2019 levels, respectively.
The ALG all-inclusive portfolio also continues to experience positive trends. Net package RevPAR for the same set of properties managed by ALG in the Americas increased 24.4% in the fourth quarter and 12.6% for the full year of 2022, compared to the same periods in 2019. Total Net package revenue for all ALG properties increased 65.4% in the fourth quarter and 48.2% for the full year of 2022, compared to the same periods in 2019, fueled by ALG's net rooms growth in the Americas and significant expansion into Europe.
Segment Results and Highlights
(in millions) Three Months Ended December 31, Year Ended December 31,
2022
20211
20192
 2022
20211
20192
Owned and leased hotels $ 88  $ 57  $ 98  $ 307  $ 91  $ 389 
Americas management and franchising 106  75  92  422  231  380 
ASPAC management and franchising 16  8  28  42  29  87 
EAME/SW Asia management and franchising 19  13  16  59  17  49 
Apple Leisure Group 43  4  —  231  4  — 
Corporate and other (40) (45) (42) (154) (116) (152)
Eliminations —  —  (1) 1  1  1 
Adjusted EBITDA $ 232  $ 112  $ 191  $ 908  $ 257  $ 754 
Three Months Ended December 31, Year Ended December 31,
2022
20211
 2019 2022
20211
 2019
Net Deferrals $ 28  $ 19  $ —  $ 94  $ 19  $ — 
Net Financed Contracts $ 15  $ 8  $ —  $ 63  $ 8  $ — 
1 Includes results for the two month period of ownership following the acquisition of ALG during three months and year ended December 31, 2021.
2 Effective January 1, 2020, the results of Miraval are reported in the owned and leased hotels segment and Americas management and franchising segment. Fees from Hyatt Residence Club are reported in the Americas management and franchising segment. These changes are also reflected for the three months and year ended December 31, 2019.
•Owned and leased hotels segment: Comparable operating margins improved to 27.9% in the fourth quarter, reflecting strong operational execution and growth in average daily rates. Owned and leased hotels Adjusted EBITDA increased $8 million, or 10%, when adjusted for the net impact of transactions, in the fourth quarter compared to the same period in 2019.
•Americas management and franchising segment: Results in the fourth quarter were led by ongoing strength in leisure transient revenue. Additionally, group room revenue was 1.3% above 2019 levels. New hotels added to the system since the start of 2019 contributed $15 million in fee revenue during the quarter.
•ASPAC management and franchising segment: Results in the fourth quarter were below 2019 levels driven by Greater China. Asia Pacific, excluding Greater China, experienced an acceleration in demand with notable momentum in South Korea, Japan, and Southeast Asia.
•EAME/SW Asia management and franchising segment: Results in the fourth quarter were led by strong fee generation in the Middle East driven by the World Cup in Qatar. Additionally, the region enjoyed strong leisure demand throughout Europe.
•Apple Leisure Group segment: Results in the fourth quarter were led by the continued strength of leisure demand, favorable pricing, and airlift that remains above 2019 levels for key Americas destinations. ALG revenue and Adjusted EBITDA includes a $23 million non-cash benefit primarily from the expiration of unredeemed pandemic-related travel credits.
Openings and Development
In the fourth quarter, 57 new hotels (or 10,784 rooms) joined Hyatt's system. Notable openings included 31 franchised hotels (or 5,082 rooms), predominately across Germany, as part of Hyatt's agreement with Lindner Hotels & Resorts, Secrets Impression Moxché, Hyatt Centric Ville-Marie Montréal, and Fuji Speedway Hotel and Grayson Hotel in New York City, both part of The Unbound Collection by Hyatt portfolio.
2

For the full year of 2022, 120 new hotels (or 23,227 rooms) joined Hyatt's system with 48 properties (or 8,281 rooms) converted to a Hyatt brand.
As of December 31, 2022, the Company had a pipeline of executed management or franchise contracts for approximately 580 hotels (approximately 117,000 rooms), inclusive of ALG's pipeline contribution of approximately 20 hotels (or approximately 8,000 rooms).
Transactions and Capital Strategy
On February 2, 2023, the Company completed the acquisition of Dream Hotel Group and paid cash of approximately $125 million. The terms of the agreement provide for up to an additional $175 million of contingent consideration through 2028 as properties come into the pipeline and open. The acquisition adds 12 lifestyle hotels (or approximately 1,700 rooms) to the Hyatt portfolio, with an additional 24 signed long-term management agreements for hotels expected to open in the future. 
The Company is currently marketing two assets held for sale and intends to successfully execute plans to realize $2.0 billion of gross proceeds from the sale of real estate, net of acquisitions, by the end of 2024 as part of its expanded asset-disposition commitment announced in August 2021. As of December 31, 2022, the Company has realized $721 million of proceeds from the net disposition of real estate as part of this commitment.
Balance Sheet and Liquidity
As of December 31, 2022, the Company reported the following:
•Total debt of $3,113 million.
•Pro rata share of unconsolidated hospitality venture debt of $538 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
•Total liquidity of approximately $2.6 billion with $1,149 million of cash and cash equivalents and short-term investments, and borrowing availability of $1,496 million under Hyatt's revolving credit facility, net of letters of credit outstanding.
The Company repurchased a total of 1,158,003 Class A common shares for approximately $106 million in the fourth quarter and repurchased a total of 4,233,894 Class A common shares for approximately $369 million during the full year of 2022. The Company ended the fourth quarter with 47,482,787 Class A and 58,917,749 Class B shares issued and outstanding. As of December 31, 2022, the Company had approximately $559 million remaining under its share repurchase authorization.
2023 Outlook
The Company is providing the following guidance for the 2023 fiscal year:
Full Year 2023 vs. 2022
System-Wide RevPAR1
 10% to 15%
Full Year 2023 vs. 2022
Net Rooms Growth Approx. 6.0%
(in millions) Full Year 2023 HHC
Capital Expenditures  Approx. $200
Total Adjusted SG&A2
 $480 - $490
One-Time Integration Costs3
 Approx. $15
1 RevPAR is based on constant currency whereby previous periods are translated based on the current period exchange rate. RevPAR percentage for 2023 vs. 2022 is based on comparable hotels.
2 Refer to the table on page A-18 of the schedules for a reconciliation of estimated selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
3 One-time integration costs are related to acquisition activity and are included within Adjusted selling, general, and administrative expenses.
No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2023 Outlook. The Company's 2023 Outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that Hyatt will achieve these results.
3

Conference Call Information
The Company will hold an investor conference call this morning, February 16, 2023, at 8:00 a.m. CT.
Participants may listen to a simultaneous webcast of the conference call, which may be accessed through the Company’s website at investors.hyatt.com. Alternatively, participants may access the live call by dialing: 888-412-4131 (U.S. Toll-Free) or 646-960-0134 (International Toll Number) using conference ID# 9019679 approximately 15 minutes prior to the scheduled start time.
A replay of the call will be available Thursday, February 16, 2023 at 11:00 a.m. CT until Wednesday, February 22, 2023 at 10:59 p.m. CT by dialing: 800-770-2030 (U.S. Toll-Free) or 647-362-9199 (International Toll Number) using conference ID# 9019679. An archive of the webcast will be available on the Company’s website for 90 days.
Investor Contact
Noah Hoppe, 312.780.5991, noah.hoppe@hyatt.com
Media Contact
Franziska Weber, 312.780.6106, franziska.weber@hyatt.com
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, outlook, occupancy, the amount by which the Company intends to reduce its real estate asset base, the expected amount of gross proceeds from the sale of such assets, and the anticipated timeframe for such asset dispositions, the number of properties we expect to open in the future, booking trends, RevPAR trends, our expected Adjusted SG&A expense, our expected capital expenditures, our expected net rooms growth, our expected system-wide RevPAR, our expected one-time integration costs, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and the pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geo-political conditions, including political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as earthquakes, tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; the pace and consistency of recovery following the COVID-19 pandemic and the long-term effects of the pandemic, additional resurgence, or COVID-19 variants, including with respect to global and regional economic activity, travel limitations or bans, the demand for travel, transient and group business, and levels of consumer confidence; the ability of third-party owners, franchisees, or hospitality venture partners to successfully navigate the impacts of the COVID-19 pandemic, any additional resurgence, or COVID-19 variants or other pandemics, epidemics or other health crises; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party property owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations, including with respect to our acquisition of Apple Leisure Group and Dream Hotel Group and the successful integration of each business; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); our ability to successfully execute on our strategy to expand our management and franchising business while at the same time reducing our real estate asset base within targeted timeframes and at expected values; declines in the value of our real estate assets; unforeseen terminations of our management or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, including as a result of the COVID-19 pandemic, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; violations of regulations or laws related to our franchising business and licensing businesses and our international operations; and other risks discussed in the Company's filings with the SEC, including our annual report on Form 10-K, which filings are available from the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
4

Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including: Adjusted Net Income (Loss); Adjusted Diluted EPS; Adjusted EBITDA; Adjusted EBITDA Margin; Adjusted SG&A Expenses; and Free Cash Flow. See the schedules to this earnings release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures.
Availability of Information on Hyatt's Website and Social Media Channels
Investors and others should note that Hyatt routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts and the Hyatt Investor Relations website. The Company uses these channels as well as social media channels (e.g., the Hyatt Facebook account (facebook.com/hyatt); the Hyatt Instagram account (instagram.com/hyatt/); the Hyatt Twitter account (twitter.com/hyatt); the Hyatt LinkedIn account (linkedin.com/company/hyatt/); and the Hyatt YouTube account (youtube.com/user/hyatt)) as a means of disclosing information about the Company's business to our guests, customers, colleagues, investors, and the public. While not all of the information that the Company posts to the Hyatt Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Hyatt to review the information that it shares at the Investor Relations link located at the bottom of the page on hyatt.com and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Email Alerts" in the "Investor Resources" section of Hyatt's website at investors.hyatt.com. The contents of these websites are not incorporated by reference into this press release or any report or document Hyatt files with the SEC, and any references to the websites are intended to be inactive textual references only.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of December 31, 2022, the Company’s portfolio included more than 1,250 hotels and all-inclusive properties in 75 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Residence Club®, Hyatt Place®, Hyatt House®, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Hyatt Centric®, and Caption by Hyatt®; the Independent Collection, including The Unbound Collection by Hyatt®, Destination by Hyatt®, and JdV by Hyatt®; and the Inclusive Collection, including Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.
5

Hyatt Hotels Corporation
Table of Contents
Financial Information
(unaudited)
















Percentages on the following schedules may not recompute due to rounding. Not meaningful percentage changes are presented as "NM".
6

Hyatt Hotels Corporation
Consolidated Statements of Income (Loss)
(unaudited)
 (in millions, except per share amounts)
 Three Months Ended
December 31,		 Year Ended
December 31,
  2022 2021 2022 2021
REVENUES:
Owned and leased hotels $ 324  $ 280  $ 1,235  $ 838 
Management, franchise, license, and other fees 226  149  808  418 
Contra revenue (4) (9) (31) (35)
Net management, franchise, license, and other fees 222  140  777  383 
Distribution and destination management 240  115  986  115 
Other revenues 67  40  273  109 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 735  501  2,620  1,583 
Total revenues 1,588  1,076  5,891  3,028 
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
Owned and leased hotels 241  219  916  725 
Distribution and destination management 189  112  775  112 
Depreciation and amortization 106  91  426  310 
Other direct costs 71  49  280  127 
Selling, general, and administrative 169  116  464  366 
Costs incurred on behalf of managed and franchised properties 751  522  2,632  1,639 
Direct and selling, general, and administrative expenses 1,527  1,109  5,493  3,279 
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts 14  8  (75) 43 
Equity earnings from unconsolidated hospitality ventures 11  20  5  28 
Interest expense (34) (40) (150) (163)
Gains on sales of real estate 13  2  263  414 
Asset impairments (19) (6) (38) (8)
Other income (loss), net 13  (53) (40) (19)
INCOME (LOSS) BEFORE INCOME TAXES 59  (102) 363  44 
BENEFIT (PROVISION) FOR INCOME TAXES 235  73  92  (266)
NET INCOME (LOSS) 294  (29) 455  (222)
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS —  —  —  — 
NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 294  $ (29) $ 455  $ (222)
EARNINGS (LOSSES) PER SHARE - Basic
Net income (loss) $ 2.74  $ (0.26) $ 4.17  $ (2.13)
Net income (loss) attributable to Hyatt Hotels Corporation $ 2.74  $ (0.26) $ 4.17  $ (2.13)
EARNINGS (LOSSES) PER SHARE - Diluted
Net income (loss) $ 2.69  $ (0.26) $ 4.09  $ (2.13)
Net income (loss) attributable to Hyatt Hotels Corporation $ 2.69  $ (0.26) $ 4.09  $ (2.13)
Basic share counts 107.2 110.1 109.1 104.0
Diluted share counts 109.4 110.1 111.3 104.0

A - 1

Hyatt Hotels Corporation
Segment Financial Summary
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change $ Change (%) Change Constant $ Change Constant $ (%) 2022 2021 Change $ Change (%) Change Constant $ Change Constant $ (%)
Owned and leased hotels $ 330  $ 286  $ 44  15.1  % $ 47  16.3  % $ 1,242  $ 855  $ 387  45.2  % $ 395  46.6  %
Americas management and franchising 153  112  41  34.6  % 41  34.6  % 598  361  237  65.1  % 237  65.2  %
ASPAC management and franchising 27  21  6  30.8  % 9  45.0  % 85  72  13  18.9  % 18  25.5  %
EAME/SW Asia management and franchising 32  18  14  74.8  % 15  81.7  % 98  43  55  129.1  % 58  139.9  %
Apple Leisure Group (a) 314  155  159  104.1  % 159  104.1  % 1,290  155  1,135  736.7  % 1,135  736.7  %
Corporate and other 22  8  14  186.7  % 14  186.7  % 65  41  24  58.1  % 24  58.1  %
Eliminations (b) (21) (16) (5) (24.3) % (5) (25.4) % (76) (47) (29) (60.6) % (29) (61.5) %
Adjusted revenues $ 857  $ 584  $ 273  46.8  % $ 280  48.2  % $ 3,302  $ 1,480  $ 1,822  123.2  % $ 1,838  125.3  %
Adjusted EBITDA
Owned and leased hotels $ 71  $ 49  $ 22  45.1  % $ 22  46.1  % $ 252  $ 77  $ 175  228.9  % $ 175  229.3  %
Pro rata share of unconsolidated hospitality ventures 17  8  9  111.4  % 9  113.6  % 55  14  41  290.6  % 41  295.6  %
Total owned and leased hotels 88  57  31  54.4  % 31  55.5  % 307  91  216  238.5  % 216  239.4  %
Americas management and franchising 106  75  31  41.5  % 31  41.4  % 422  231  191  82.7  % 191  82.8  %
ASPAC management and franchising 16  8  8  92.3  % 10  135.1  % 42  29  13  44.6  % 16  59.1  %
EAME/SW Asia management and franchising 19  13  6  47.3  % 6  51.8  % 59  17  42  250.4  % 43  267.5  %
Apple Leisure Group (a) 43  4  39  NM 39  NM 231  4  227  NM 227  NM
Corporate and other (40) (45) 5  11.8  % 4  9.5  % (154) (116) (38) (33.7) % (39) (35.2) %
Eliminations —  —  —  (136.9) % —  (136.9) % 1  1  —  (6.7) % —  (6.7) %
Adjusted EBITDA $ 232  $ 112  $ 120  106.9  % $ 121  108.9  % $ 908  $ 257  $ 651  252.9  % $ 654  256.4  %
Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Net Deferral activity
Increase in deferred revenue $ 52  $ 35  $ 17  48.3  % $ 199  $ 35  $ 164  469.3  %
Increase in deferred costs (24) (16) (8) (50.8) % (105) (16) (89) (557.4) %
Net Deferrals $ 28  $ 19  $ 9  46.3  % $ 94  $ 19  $ 75  395.3  %
Increase in Net Financed Contracts $ 15  $ 8  $ 7  98.4  % $ 63  $ 8  $ 55  727.1  %

(a) Includes results for the two month period of ownership following the acquisition of ALG during the three months and year ended December 31, 2021.
(b) These intersegment eliminations represent management fee revenues and expenses related to our owned and leased hotels and promotional award redemption revenues and expenses related to our co-branded credit card program at our owned and leased hotels.
A - 2

Hyatt Hotels Corporation
Reconciliation of Unlimited Vacation Club Net Deferrals
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Sales of membership club contracts deferrals $ 91  $ 54  $ 37  65.6  % $ 358  $ 54  $ 304  550.4  %
Membership club revenue recognized (39) (19) (20) (93.1) % (159) (19) (140) (688.7) %
Increase in deferred revenue from membership club contract sales 52  35  17  48.3  % 199  35  164  469.3  %
Costs of memberships club contracts deferrals (28) (16) (12) (74.5) % (116) (16) (100) (619.8) %
Membership club costs recognized 4  —  4  NM 11  —  11  NM
Increase in deferred costs from membership club contract costs (24) (16) (8) (50.8) % (105) (16) (89) (557.4) %
Net Deferrals (a) $ 28  $ 19  $ 9  46.3  % $ 94  $ 19  $ 75  395.3  %
Increase in Net Financed Contracts (a) $ 15  $ 8  $ 7  98.4  % $ 63  $ 8  $ 55  727.1  %

(a) Includes results for the two month period of ownership following the acquisition of ALG during the three months and year ended December 31, 2021.

Net Deferrals represent cash received in the period for both new membership down payments and monthly installment payments on financed contracts, less cash paid for costs incurred to sell new contracts, net of revenues and expenses recognized on our consolidated statements of income (loss) during the period.
Net Financed Contracts represent contractual future cash flows due to the Company over an average term of less than 4 years, less expenses that will be incurred to fulfill the contract, net of monthly cash installment payments received during the period. At December 31, 2022, the Net Financed Contract balance not recorded on our consolidated balance sheet was $186 million.
A - 3

Hyatt Hotels Corporation
Hotel Chain Statistics
Comparable Hotels
(in constant $) Three Months Ended December 31, Year Ended December 31,
RevPAR Occupancy ADR RevPAR Occupancy ADR
2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021
Owned and leased hotels (# of hotels) (a)
Owned and leased hotels (24) $ 190.88  41.7  % 68.8   % 14.5% pts $ 277.37  11.7   % $ 175.97  87.6   % 65.8   % 22.7% pts $ 267.43  22.9   %
Managed and franchised hotels (# of hotels) (b)
System-wide hotels (912) $ 126.33  34.8  % 63.5   % 8.2% pts $ 198.88  17.5   % $ 121.43  60.2   % 62.2   % 13.9% pts $ 195.35  24.5   %
Americas
Full service hotels (217) $ 155.82  34.8  % 63.7   % 10.6% pts $ 244.64  12.3   % $ 155.87  74.1   % 63.7   % 19.6% pts $ 244.75  20.5   %
Select service hotels (431) $ 102.13  19.8  % 67.9   % 3.0% pts $ 150.32  14.5   % $ 105.21  38.6   % 69.7   % 8.5% pts $ 150.92  21.8   %
ASPAC
Full service hotels (118) $ 101.66  46.6  % 54.6   % 8.4% pts $ 186.07  24.1   % $ 83.89  32.0   % 48.7   % 6.7% pts $ 172.16  13.8   %
Select service hotels (31) $ 35.27  5.8  % 52.4   % 0.7% pts $ 67.24  4.3   % $ 34.20  (5.1)  % 50.9   % (3.0)% pts $ 67.15  0.5   %
EAME/SW Asia
Full service hotels (97) $ 149.41  55.1  % 67.7   % 12.5% pts $ 220.55  26.3   % $ 128.48  110.3   % 61.9   % 21.5% pts $ 207.69  37.3   %
Select service hotels (18) $ 78.17  51.4  % 74.8   % 16.3% pts $ 104.45  18.3   % $ 65.11  84.6   % 69.8   % 20.9% pts $ 93.28  29.3   %

(a) Owned and leased hotels figures do not include unconsolidated hospitality ventures.
(b) Managed and franchised hotels figures include owned and leased hotels.
A - 4

Hyatt Hotels Corporation
Hotel Brand Statistics
Comparable System-wide Managed and Franchised Hotels (a)
(in constant $) Three Months Ended December 31, Year Ended December 31,
RevPAR Occupancy ADR RevPAR Occupancy ADR
2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021
Brand (# of hotels)
Park Hyatt (39) $ 267.85  49.2  % 61.4   % 12.3% pts $ 435.88  19.3   % $ 219.72  62.1  % 55.1   % 12.9% pts $ 399.04  24.2   %
Grand Hyatt (55) $ 144.49  43.1   % 61.0   % 10.1% pts $ 236.93  19.6   % $ 133.60  69.1   % 57.4   % 14.5% pts $ 232.90  26.5   %
Andaz (23) $ 235.64  29.4  % 67.7  % 9.6% pts $ 348.20  11.1  % $ 205.21  52.1  % 61.8  % 13.5% pts $ 332.02  18.9  %
The Unbound Collection by Hyatt (21) $ 177.86  25.6  % 58.2  % 6.2% pts $ 305.56  12.3  % $ 199.12  62.5  % 58.2  % 13.9% pts $ 341.86  23.4  %
Composite Luxury1
 $ 180.71  37.9   % 61.8   % 9.8% pts $ 292.29  16.1   % $ 164.58  62.3   % 57.9   % 14.2% pts $ 284.15  22.4   %
Hyatt Regency (203) $ 115.75  40.8   % 61.0   % 10.6% pts $ 189.91  16.5   % $ 113.22  74.1   % 59.3   % 17.4% pts $ 190.77  23.0   %
Hyatt Centric (37) $ 154.38  53.1   % 70.7  % 13.8% pts $ 218.21  23.0  % $ 137.82  82.0   % 66.4   % 19.0% pts $ 207.69  29.9   %
Composite Upper-Upscale2
 $ 119.78  41.9   % 62.0  % 10.7% pts $ 193.23  17.5  % $ 115.87  75.2   % 60.2  % 17.6% pts $ 192.53  23.9  %
Hyatt Place (366) $ 92.40  19.6  % 66.6   % 3.9% pts $ 138.83  12.6   % $ 94.05  36.6  % 67.4   % 8.1% pts $ 139.45  20.0   %
Hyatt House (109) $ 109.98  22.9   % 69.2   % 2.7% pts $ 159.01  18.3   % $ 113.22  43.2   % 71.3   % 8.8% pts $ 158.85  25.6   %
Composite Upscale3
 $ 96.53  20.5  % 67.2   % 3.6% pts $ 143.71  14.0   % $ 98.55  38.3  % 68.3   % 8.3% pts $ 144.20  21.5   %

(a) Managed and franchised hotels figures include owned and leased hotels.
1 Includes Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination by Hyatt, and Thompson Hotels.
2 Includes Hyatt Regency, Hyatt, Hyatt Centric, and JdV by Hyatt.
3 Includes Hyatt Place and Hyatt House.
A - 5

Hyatt Hotels Corporation
All-inclusive Brand Statistics
All Properties (Comparable and Non-Comparable) Managed and Franchised Hotels (a)
Three Months Ended December 31, Year Ended December 31,
Net Package RevPAR Occupancy Net Package
ADR		 Net Package RevPAR Occupancy Net Package
ADR
2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021
Brand (# of hotels)
ALG resorts Americas (62) $ 200.17  NM 69.4  % NM $ 288.36  NM $ 199.28  NM 69.7  % NM $ 286.01  NM
ALG resorts Europe (49) (b) $ 87.08  NM 70.7  % NM $ 123.23  NM $ 100.57  NM 72.5  % NM $ 138.75  NM
Composite all-inclusive1 (b)
 $ 190.64  NM 68.9  % NM $ 276.52  NM $ 187.28  NM 70.0  % NM $ 267.65  NM

(a) Managed and franchised hotels figures include owned and leased hotels.
(b) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
1 Includes ALG resorts, Hyatt Ziva and Hyatt Zilara.
A - 6

Hyatt Hotels Corporation
Fee Summary
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Base management fees $ 96  $ 59  $ 37  63.5  % $ 319  $ 169  $ 150  88.9  %
Incentive management fees 64  28  36  120.6  % 192  58  134  227.3  %
Franchise, license, and other fees 66  62  4  5.5  % 297  191  106  55.4  %
Management, franchise, license, and other fees $ 226  $ 149  $ 77  50.4  % $ 808  $ 418  $ 390  93.0  %

Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Management, franchise, license, and other fees $ 226  $ 149  $ 77  50.4  % $ 808  $ 418  $ 390  93.0  %
Contra revenue from management agreements —  (6) 6  95.8  % (17) (23) 6  27.5  %
Contra revenue from franchise agreements (4) (3) (1) (13.8) % (14) (12) (2) (21.2) %
Net management, franchise, license, and other fees $ 222  $ 140  $ 82  57.5  % $ 777  $ 383  $ 394  102.6  %

A - 7

Hyatt Hotels Corporation
Properties and Rooms by Geography
Owned and leased hotels
December 31, 2022 December 31, 2021 Change
Properties Rooms Properties Rooms Properties Rooms
Full service hotels
United States (a) 17  9,132  22  11,058  (5) (1,926)
Other Americas 3  1,262  3  1,262  —  — 
EAME/SW Asia 4  867  5  1,135  (1) (268)
Select service hotels
United States 1  171  1  171  —  — 
Other Americas 2  293  2  293  —  — 
EAME/SW Asia 1  330  1  330  —  — 
Total full service and select service hotels 28  12,055  34  14,249  (6) (2,194)
All-inclusive hotels (b) 6  1,279  4  909  2  370 
Total owned and leased hotels (c) 34  13,334  38  15,158  (4) (1,824)

(a) Includes one hotel that was rebranded and combined with an existing property during the twelve months ended December 31, 2022.
(b) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(c) Figures do not include unconsolidated hospitality ventures.
A - 8

Hyatt Hotels Corporation
Properties and Rooms by Geography
Managed and franchised properties (includes owned and leased properties)
December 31, 2022 December 31, 2021 Change
Properties Rooms Properties Rooms Properties Rooms
Americas
Full service hotels
United States managed 148  64,980  147  63,974  1  1,006 
Other Americas managed 26  9,056  25  8,958  1  98 
United States franchised 79  23,278  77  23,102  2  176 
Other Americas franchised 12  2,289  8  1,307  4  982 
Subtotal 265  99,603  257  97,341  8  2,262 
Select service hotels
United States managed 35  5,220  33  4,923  2  297 
Other Americas managed 13  1,857  13  1,857  —  — 
United States franchised 409  57,167  411  57,389  (2) (222)
Other Americas franchised 21  2,994  13  1,761  8  1,233 
Subtotal 478  67,238  470  65,930  8  1,308 
ASPAC
Full service hotels
ASPAC managed 132  43,588  125  41,649  7  1,939 
ASPAC franchised 11  3,275  10  3,153  1  122 
Subtotal 143  46,863  135  44,802  8  2,061 
Select service hotels
ASPAC managed 31  5,522  29  5,053  2  469 
ASPAC franchised 26  4,532  13  2,244  13  2,288 
Subtotal 57  10,054  42  7,297  15  2,757 
EAME/SW Asia
Full service hotels
EAME/SW Asia managed 110  27,075  101  25,457  9  1,618 
EAME/SW Asia franchised 59  9,955  22  3,799  37  6,156 
Subtotal 169  37,030  123  29,256  46  7,774 
Select service hotels
EAME/SW Asia managed 25  4,144  21  3,429  4  715 
EAME/SW Asia franchised 5  1,116  6  1,411  (1) (295)
Subtotal 30  5,260  27  4,840  3  420 
Total full service and select service hotels 1,142  266,048  1,054  249,466  88  16,582 
Americas
All-inclusive
Other Americas 72  25,425  68  24,873  4  552 
Subtotal 72  25,425  68  24,873  4  552 
EAME/SW Asia (a)
All-inclusive
EAME/SW Asia 49  12,635  40  10,605  9  2,030 
Subtotal 49  12,635  40  10,605  9  2,030 
Total all-inclusive hotels 121  38,060  108  35,478  13  2,582 
Total managed and franchised (b) 1,263  304,108  1,162  284,944  101  19,164 
Vacation ownership 22  15  7 
Residential 39  36  3 
Condominium ownership 39  39  — 

(a) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(b) Figures do not include vacation ownership, residential, or condominium ownership units.
A - 9

Hyatt Hotels Corporation
Properties and Rooms by Brand
December 31, 2022 December 31, 2021 Change
Properties Rooms Properties Rooms Properties Rooms
Brand
Park Hyatt 46  8,615  45  8,413  1  202 
Miraval (a) 3  383  3  357  —  26 
Grand Hyatt 61  32,314  58  31,189  3  1,125 
Alila 16  1,765  15  1,681  1  84 
Andaz 25  5,610  24  5,447  1  163 
The Unbound Collection by Hyatt 35  6,671  28  5,642  7  1,029 
Thompson Hotels 18  3,767  15  3,147  3  620 
Destination by Hyatt (a) 17  3,608  18  3,959  (1) (351)
Hyatt Regency (b) 233  96,917  226  94,241  7  2,676 
Hyatt 13  3,354  13  3,354  —  — 
Hyatt Centric 55  11,290  48  10,182  7  1,108 
JdV by Hyatt (c) 54  8,402  21  2,987  33  5,415 
Hyatt Place 413  60,419  403  58,147  10  2,272 
Hyatt House 129  18,361  124  17,830  5  531 
Caption by Hyatt 1  136  —  —  1  136 
UrCove 22  3,636  12  2,090  10  1,546 
Other 1  800  1  800  —  — 
Total full service and select service hotels 1,142  266,048  1,054  249,466  88  16,582 
ALG resorts (d)(e) 111  34,178  99  31,887  12  2,291 
Hyatt Ziva 6  2,672  6  2,672  —  — 
Hyatt Zilara 4  1,210  3  919  1  291 
Total all-inclusive hotels 121  38,060  108  35,478  13  2,582 
Total managed and franchised properties (f) 1,263  304,108  1,162  284,944  101  19,164 
Hyatt Residence Club (g) 22  15  7 

(a) Includes one Destination by Hyatt property that was rebranded and combined with a Miraval property during the twelve months ended December 31, 2022.
(b) Includes two properties that we will rebrand under the respective brand in 2023.
(c) Includes 31 properties that we will rebrand under the respective brand at a future date.
(d) Includes seven non-branded properties managed by ALG.
(e) Certain resorts in Europe operate under a hybrid all-inclusive model, which includes various all-inclusive package options as well as rooms-only options.
(f) Figures do not include vacation ownership, residential, or condominium ownership units.
(g) Includes eight properties that we will rebrand under the respective brand in 2023.
A - 10

Hyatt Hotels Corporation
Impact of Sold Hotels to Owned and Leased Hotels Segment Adjusted EBITDA
(in millions)
Fiscal Year 2022
Adjusted EBITDA First Quarter Second Quarter Third Quarter Fourth Quarter Full Year
Owned and leased hotels $ 48  $ 82  $ 51  $ 71  $ 252 
Less: Contribution from sold owned and leased hotels (a) (22) (9) (3) —  (34)
Owned and leased hotels less contribution from sold hotels (b) $ 26  $ 73  $ 48  $ 71  $ 218 
Pro rata share of unconsolidated hospitality ventures $ 6  $ 17  $ 15  $ 17  $ 55 
Less: Contribution from sold unconsolidated hospitality ventures (c) (1) (1) (1) (1) (4)
Pro rata share of unconsolidated hospitality ventures less contribution from sold unconsolidated hospitality ventures (d) $ 5  $ 16  $ 14  $ 16  $ 51 
Fiscal Year 2021
First Quarter Second Quarter Third Quarter Fourth Quarter Full Year
Owned and leased hotels $ (25) $ 11  $ 42  $ 49  $ 77 
Less: Contribution from sold owned and leased hotels (a) (e) (4) (18) (22) (16) (60)
Owned and leased hotels less contribution from sold hotels (b) $ (29) $ (7) $ 20  $ 33  $ 17 
Pro rata share of unconsolidated hospitality ventures $ (4) $ 1  $ 9  $ 8  $ 14 
Less: Contribution from sold unconsolidated hospitality ventures (c) 2  (1) (2) (3) (4)
Pro rata share of unconsolidated hospitality ventures less contribution from sold unconsolidated hospitality ventures (d) $ (2) $ —  $ 7  $ 5  $ 10 

(a) Contribution from sold owned and leased hotels represents the Adjusted EBITDA contribution in each period for hotels that have since been sold and entered into long-term management or franchise agreements, and excludes fee income retained upon sale. Hotels that have been sold include Hyatt Regency Lost Pines Resort and Spa (2Q21), Hyatt Regency Lake Tahoe Resort, Spa and Casino (3Q21), Alila Ventana Big Sur (3Q21), Hyatt Regency Miami (4Q21), Hyatt Regency Bishkek (4Q21), Hyatt Regency Indian Wells Resort & Spa (2Q22), Grand Hyatt San Antonio River Walk (2Q22), The Driskill (2Q22), The Confidante Miami Beach (2Q22), Hyatt Regency Mainz (4Q22), and Hyatt Regency Greenwich (4Q22).
(b) Owned and leased hotels less contribution from sold hotels represents the Adjusted EBITDA contribution from all owned and leased hotels that remain in Hyatt's portfolio as of December 31, 2022.
(c) Contribution from sold unconsolidated hospitality ventures represents Hyatt's pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA contribution in each period for unconsolidated hospitality ventures that have since been sold. Unconsolidated hospitality ventures that have been sold include Grand Hyatt São Paulo (1Q21), Hyatt Place Celaya (2Q21), Hyatt Place Los Cabos (2Q21), Hyatt Place Tijuana (2Q21), Hyatt Centric Beale Street Memphis (2Q21), Hyatt Place Glendale/Los Angeles (4Q21), Hyatt Place San Jose Airport (4Q21), Hyatt House San Jose Airport (4Q21), Hyatt Centric Downtown Portland (4Q21), Hyatt House Nashville at Vanderbilt (4Q21), Hyatt Regency Andares Guadalajara (2Q22), and Hyatt Regency Jersey City on the Hudson (4Q22). All sold unconsolidated hospitality ventures continue to be a part of the Hyatt portfolio under long-term management or franchise agreements.
(d) Pro rata share of unconsolidated hospitality ventures less contribution from sold unconsolidated hospitality ventures represents Hyatt's pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA contribution from all unconsolidated hospitality ventures that remain in Hyatt's portfolio as of December 31, 2022.
(e) Contribution from sold owned and leased hotels includes the Adjusted EBITDA contribution from one property that converted from leased to managed during the three months ended December 31, 2021.
















A - 11

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income (Loss) Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
  2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Net income (loss) attributable to Hyatt Hotels Corporation $ 294  $ (29) $ 323  NM $ 455  $ (222) $ 677  305.0  %
Interest expense 34  40  (6) (16.6) % 150  163  (13) (8.2) %
(Benefit) provision for income taxes (235) (73) (162) (224.3) % (92) 266  (358) (134.4) %
Depreciation and amortization 106  91  15  16.7  % 426  310  116  37.3  %
EBITDA 199  29  170  572.4  % 939  517  422  81.5  %
Contra revenue 4  9  (5) (56.2) % 31  35  (4) (11.3) %
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (735) (501) (234) (46.5) % (2,620) (1,583) (1,037) (65.4) %
Costs incurred on behalf of managed and franchised properties 751  522  229  44.0  % 2,632  1,639  993  60.6  %
Equity earnings from unconsolidated hospitality ventures (11) (20) 9  43.1  % (5) (28) 23  80.6  %
Stock-based compensation expense 14  8  6  62.6  % 61  50  11  20.2  %
Gains on sales of real estate (13) (2) (11) (390.4) % (263) (414) 151  36.6  %
Asset impairments 19  6  13  232.2  % 38  8  30  376.7  %
Other (income) loss, net (13) 53  (66) (125.0) % 40  19  21  109.2  %
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA 17  8  9  111.4  % 55  14  41  290.6  %
Adjusted EBITDA $ 232  $ 112  $ 120  106.9  % $ 908  $ 257  $ 651  252.9  %

Three Months Ended
December 31,		 Year Ended
December 31,
Net Deferral activity 2022 2021 Change $ Change (%) 2022 2021 Change ($) Change (%)
Increase in deferred revenue $ 52  $ 35  $ 17  48.3  % $ 199  $ 35  $ 164  469.3  %
Increase in deferred costs (24) (16) (8) (50.8) % (105) (16) (89) (557.4) %
Net Deferrals (a) $ 28  $ 19  $ 9  46.3  % $ 94  $ 19  $ 75  395.3  %
Increase in Net Financed Contracts (a) $ 15  $ 8  $ 7  98.4  % $ 63  $ 8  $ 55  727.1  %

(a) Includes results for the two month period of ownership following the acquisition of ALG during the three months and year ended December 31, 2021.














A - 12

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Total Revenues to Adjusted Revenues
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Total revenues $ 1,588  $ 1,076  $ 512  47.5  % $ 5,891  $ 3,028  $ 2,863  94.5  %
Add: Contra revenue 4  9  (5) (56.2) % 31  35  (4) (11.3) %
Less: Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (735) (501) (234) (46.5) % (2,620) (1,583) (1,037) (65.4) %
Adjusted revenues $ 857  $ 584  $ 273  46.8  % $ 3,302  $ 1,480  $ 1,822  123.2  %
Adjusted EBITDA Margin % 27.0  % 19.2  % 7.8  % 27.5  % 17.4  % 10.1  %
Adjusted EBITDA Margin % Change in Constant Currency 7.9  % 10.1  %









































A - 13

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA
(in millions)
Three Months Ended December 31, Year Ended December 31,
2019 2019
Net income attributable to Hyatt Hotels Corporation $ 321  $ 766 
Interest expense 17  75 
Provision for income taxes 92  240 
Depreciation and amortization 81  329 
EBITDA 511  1,410 
Contra revenue 6  22 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (635) (2,461)
Costs incurred on behalf of managed and franchised properties 649  2,520 
Equity losses from unconsolidated hospitality ventures 8  10 
Stock-based compensation expense 7  35 
Gains on sales of real estate (349) (723)
Asset impairments 5  18 
Other income, net (23) (127)
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 12  50 
Adjusted EBITDA $ 191  $ 754 


A - 14

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Diluted Earnings (Losses) per Share and Net Income (Loss) Attributable to Hyatt Hotels Corporation, to Adjusted Diluted Earnings (Losses) per Share and Adjusted Net Income (Loss) Attributable to Hyatt Hotels Corporation - Three Months Ended December 31, 2022 and December 31, 2021
(in millions, except per share amounts)
 Location on Consolidated Statements of Income (Loss) Three Months Ended
December 31,
2022 2021
Net income (loss) attributable to Hyatt Hotels Corporation $ 294  $ (29)
Diluted earnings (losses) per share $ 2.69  $ (0.26)
Special items
Unconsolidated hospitality ventures (a) Equity earnings (losses) from unconsolidated hospitality ventures (14) (32)
Gains on sales of real estate (b) Gains (losses) on sales of real estate and other (13) (2)
Unrealized (gains) losses (c) Other income (loss), net (13) 6 
Asset impairments (d) Asset impairments 19  6 
Restructuring expenses (e) Other income (loss), net 13  — 
Fund deficits (f) Revenues for the reimbursement of costs incurred and costs incurred on behalf of managed and franchised properties; other income (loss), net 10  17 
Transaction costs (g) Other income (loss), net 5  27 
Utilization of Avendra and other proceeds (h) Costs incurred on behalf of managed and franchised properties; depreciation and amortization 3  4 
Other Other income (loss), net —  3 
Special items - pre-tax 10  29 
Income tax provision for special items Benefit (provision) for income taxes (26) (306)
Total special items - after-tax (16) (277)
Special items impact per diluted share $ (0.14) $ (2.52)
Adjusted net income (loss) attributable to Hyatt Hotels Corporation $ 278  $ (306)
Adjusted diluted earnings (losses) per share $ 2.55  $ (2.78)
(a) Unconsolidated hospitality ventures - During the three months ended December 31, 2022 (Q4 2022), we recognized a $15 million net gain related to the sale of Hyatt Regency Jersey City on the Hudson by an unconsolidated hospitality venture in which we hold an ownership interest. During the three months ended December 31, 2021 (Q4 2021), we recognized $32 million of net gains related to sales activity of certain equity method investments.
(b) Gains on sales of real estate - During Q4 2022, we recognized a $14 million pre-tax gain related to the sale of Hyatt Regency Greenwich. During Q4 2021, we recognized a $2 million pre-tax gain on the contribution of Hyatt Regency Miami assets to a newly formed hospitality venture, resulting in the derecognition of the nonfinancial assets in the subsidiary.
(c) Unrealized (gains) losses - During Q4 2022 and Q4 2021, we recognized unrealized gains and losses, respectively, due to the change in fair value of our marketable securities.
(d) Asset impairments - During Q4 2022, we recognized $17 million of impairment charges related to brand and other indefinite-lived intangibles and $2 million of impairment charges related to management and franchise agreement intangibles, primarily as a result of contract terminations. During Q4 2021, we recognized impairment charges related to intangible assets, primarily as a result of contract terminations.
(e) Restructuring expenses - During Q4 2022, we recognized $13 million in restructuring expenses related to an owned hotel, net of $10 million of cash received from the developer.
(f) Fund deficits - During Q4 2022 and Q4 2021, we recognized net deficits, which we intend to recover in future periods, on certain funds due to the timing of revenue and expense recognition.
(g) Transaction costs - During Q4 2021, we recognized $26 million of transaction costs related to the acquisition of ALG.
(h) Utilization of Avendra and other proceeds - During Q4 2022 and Q4 2021, we recognized expenses related to the partial utilization of the Avendra LLC sale proceeds for the benefit of our hotels. The gain recognized in conjunction with the sale of Avendra LLC was included as a special item during the year ended December 31, 2017.
A - 15

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Diluted Earnings (Losses) per Share and Net Income (Loss) Attributable to Hyatt Hotels Corporation, to Adjusted Diluted Earnings (Losses) per Share and Adjusted Net Income (Loss) Attributable to Hyatt Hotels Corporation - Year Ended December 31, 2022 and December 31, 2021
(in millions, except per share amounts)
 Location on Consolidated Statements of Income (Loss) Year Ended
December 31,
2022 2021
Net income (loss) attributable to Hyatt Hotels Corporation $ 455  $ (222)
Diluted earnings (losses) per share $ 4.09  $ (2.13)
Special items
Gains on sales of real estate (a) Gains (losses) on sales of real estate and other (263) (414)
Unconsolidated hospitality ventures (b) Equity earnings (losses) from unconsolidated hospitality ventures (18) (100)
Fund (surpluses) deficits (c) Revenues for the reimbursement of costs incurred and costs incurred on behalf of managed and franchised properties; other income (loss), net (6) 43 
Unrealized losses (gains) (d) Other income (loss), net 55  (14)
Restructuring expenses (e) Other income (loss), net 39  3 
Asset impairments (f) Asset impairments 38  8 
Utilization of Avendra and other proceeds (g) Costs incurred on behalf of managed and franchised properties; depreciation and amortization 12  16 
Loss on extinguishment of debt (h) Other income (loss), net 9  2 
Transaction costs (i) Other income (loss), net 6  46 
Other Other income (loss), net 8  (1)
Special items - pre-tax (120) (411)
Income tax benefit for special items Benefit (provision) for income taxes 30  88 
Total special items - after-tax (90) (323)
Special items impact per diluted share $ (0.81) $ (3.11)
Adjusted net income (loss) attributable to Hyatt Hotels Corporation $ 365  $ (545)
Adjusted diluted earnings (losses) per share $ 3.28  $ (5.24)

(a) Gains on sales of real estate - During the year ended December 31, 2022 (YTD 2022), net gains were $263 million, primarily driven by pre-tax gains related to the sales of Grand Hyatt San Antonio River Walk $137 million, The Driskill $51 million, Hyatt Regency Indian Wells Resort & Spa $40 million, The Confidante Miami Beach $24 million, and Hyatt Regency Greenwich $14 million. During the year ended December 31, 2021 (YTD 2021), net gains were $414 million, primarily driven by a $305 million pre-tax gain related to the sale of Hyatt Regency Lake Tahoe Resort, Spa and Casino and a $104 million pre-tax gain related to the sale of Hyatt Regency Lost Pines Resort and Spa.
(b) Unconsolidated hospitality ventures - During YTD 2022, we recognized a $4 million pre-tax gain related to the sale of our ownership interest in an equity method investment and a $15 million net gain related to the sale of Hyatt Regency Jersey City on the Hudson by an unconsolidated hospitality venture in which we hold an ownership interest. During YTD 2021, we recognized a $69 million pre-tax gain on the purchase of the remaining 50% interest in the entities that own Grand Hyatt São Paulo and $31 million of net gains related to sales activity of certain equity method investments.
(c) Fund (surpluses) deficits - During YTD 2022, we recognized net surpluses on certain funds due to the timing of revenue and expense recognition. During YTD 2021, we recognized net deficits, which we intend to recover in future periods, on certain funds due to the timing of revenue and expense recognition.
(d) Unrealized losses (gains) - During YTD 2022 and YTD 2021, we recognized unrealized losses and gains, respectively, due to the change in fair value of our marketable securities.
(e) Restructuring expenses - During YTD 2022, we recognized $39 million of restructuring expenses related to an owned hotel, net of $10 million of cash received from the developer.
(f) Asset impairments - During YTD 2022, we recognized $21 million of impairment charges related to brand and other indefinite-lived intangibles, $10 million of asset charges related to intangible assets, primarily as a result of contract terminations, and a $7 million goodwill impairment charge in connection with the sale of Grand Hyatt San Antonio River Walk. During YTD 2021, we recognized $8 million of asset impairment charges related to intangible assets, primarily as a result of contract terminations.
(g) Utilization of Avendra and other proceeds - During YTD 2022 and YTD 2021, we recognized expenses related to the partial utilization of the Avendra LLC sale proceeds for the benefit of our hotels.
(h) Loss on extinguishment of debt - During YTD 2022, we recognized an $8 million loss on extinguishment of debt for the bonds that were legally defeased in conjunction with the sale of Grand Hyatt San Antonio River Walk.
(i) Transaction costs - During Q4 2021, we recognized $45 million of transaction costs related to the acquisition of ALG.
A - 16

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: SG&A Expenses to Adjusted SG&A Expenses
Results of operations as presented on the consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in SG&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no net impact to our earnings (losses). SG&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this measure excluding the impact of our rabbi trust investments and stock-based compensation expense.
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
SG&A expenses $ 169  $ 116  $ 53  46.1  % $ 464  $ 366  $ 98  26.8  %
Less: rabbi trust impact (13) (8) (5) (70.0) % 67  (38) 105  279.6  %
Less: stock-based compensation expense (14) (8) (6) (62.6) % (61) (50) (11) (20.2) %
Adjusted SG&A expenses $ 142  $ 100  $ 42  43.0  % $ 470  $ 278  $ 192  69.2  %

The table below provides a segment breakdown for Adjusted SG&A expenses.
Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Americas management and franchising $ 19  $ 15  $ 4  26.3  % $ 64  $ 50  $ 14  26.6  %
ASPAC management and franchising 12  13  (1) (7.9) % 43  42  1  1.3  %
EAME/SW Asia management and franchising 12  5  7  145.8  % 38  26  12  49.7  %
Owned and leased hotels 3  3  —  19.0  % 13  12  1  11.9  %
Apple Leisure Group (a) 48  23  25  110.7  % 138  23  115  502.8  %
Corporate and other 48  41  7  16.3  % 174  125  49  39.4  %
Adjusted SG&A expenses $ 142  $ 100  $ 42  43.0  % $ 470  $ 278  $ 192  69.2  %

(a) Includes results for the two month period of ownership following the acquisition of ALG during the three months and year ended December 31, 2021.
A - 17

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Guidance: SG&A Expenses to Adjusted SG&A Expenses
No additional disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the forecast. The Company's outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that the Company will achieve these results. Results of operations as presented on the consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in SG&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no net impact to our earnings (losses). SG&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this forecasted measure excluding the impact of our rabbi trust investments and forecasted stock-based compensation expense.
(in millions) Year Ended
December 31, 2023
Forecast Range
Low Case High Case
SG&A expenses $ 544  $ 554 
Less: rabbi trust impact (a) —  — 
Less: stock-based compensation expense (64) (64)
Adjusted SG&A expenses $ 480  $ 490 

(a) Impact of rabbi trust is not forecasted for the year ended December 31, 2023 as performance of underlying invested assets is not estimable.
A - 18

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Comparable Owned and Leased Hotels Operating Margin to Owned and Leased Hotels Operating Margin
Below is a reconciliation of consolidated owned and leased hotels revenues and expenses, as used in calculating comparable owned and leased hotels operating margin percentages. Results of operations as presented on the consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in owned and leased hotels expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no net impact to our earnings (losses). Below is a reconciliation of the margins excluding the impact of our rabbi trusts and excluding the impact of non-comparable hotels.
(in millions) Three Months Ended
December 31,		 Year Ended
December 31,
2022 2021 Change ($) Change (%) 2022 2021 Change ($) Change (%)
Revenues
Comparable owned and leased hotels $ 273  $ 197  $ 76  38.9  % $ 976  $ 539  $ 437  81.3  %
Non-comparable owned and leased hotels 51  83  (32) (40.3) % 259  299  (40) (13.5) %
Owned and leased hotels revenues $ 324  $ 280  $ 44  15.4  % $ 1,235  $ 838  $ 397  47.4  %
Expenses
Comparable owned and leased hotels $ 198  $ 152  $ 46  29.8  % $ 712  $ 470  $ 242  51.6  %
Non-comparable owned and leased hotels 42  67  (25) (36.8) % 212  250  (38) (15.3) %
Rabbi trust impact 1  —  1  31.6  % (8) 5  (13) (242.4) %
Owned and leased hotels expenses $ 241  $ 219  $ 22  9.5  % $ 916  $ 725  $ 191  26.2  %
Owned and leased hotels operating margin percentage 25.4  % 21.4  % 4.0  % 25.9  % 13.4  % 12.5  %
Comparable owned and leased hotels operating margin percentage 27.9  % 22.8  % 5.1  % 27.1  % 12.8  % 14.3  %
    

A - 19

Hyatt Hotels Corporation
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net cash provided by operating activities to Free cash flow

(in millions) Year Ended
December 31,
2022
Net cash provided by operating activities $ 674 
Capital expenditures (201)
Free cash flow $ 473 

A - 20

Hyatt Hotels Corporation
Pipeline Approximate Mix
(Pipeline: approximately 580 Hotels or approximately 117,000 Rooms)
December 31, 2022
Approx. Hotels Approx. Rooms
Segment
Americas  185 28,000
ASPAC  255 57,000
EAME/SW Asia  120 24,000
ALG resorts  20 8,000
Total  580 117,000
Geography
Greater China  200 45,000
United States  140 20,000
India  50 8,000
Mexico  25 6,000
Saudi Arabia  10 5,000
Other  155 33,000
Total  580 117,000
Chain Scale (a)
Luxury1
  140 34,000
Upper Upscale2
  155 36,000
Upscale and Upper Midscale3
  285 47,000
Total 580 117,000
Contract Type
Managed  330 78,000
Franchised  250 39,000
Total  580 117,000

(a) Chain Scale classification is consistent with Smith Travel Research.
1 Luxury includes Grand Hyatt, The Unbound Collection by Hyatt, Alila, Andaz, Park Hyatt, Dreams Resort & Spa, Thompson Hotels, Destination by Hyatt, Secrets Resorts & Spas, Miraval, Breathless Resorts & Spas, Hyatt Vivid Hotels & Resorts, Zoetry Wellness & Spa Resorts, and Hyatt Zilara.
2 Upper Upscale includes Hyatt Regency, Hyatt Centric, and JdV by Hyatt.
3 Upscale and Upper Midscale includes Hyatt Place, Hyatt House, Caption by Hyatt, Alua Hotels & Resorts, and UrCove.
A - 21

Hyatt Hotels Corporation
Definitions
Adjusted Earnings Before Interest Expense, Taxes, Depreciation, and Amortization (Adjusted EBITDA) and EBITDA
We use the terms Adjusted EBITDA and EBITDA throughout this earnings release. Adjusted EBITDA and EBITDA, as we define them, are non-GAAP measures. We define consolidated Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude the following items:
•interest expense;
•benefit (provision) for income taxes;
•depreciation and amortization;
•amortization of management and franchise agreement assets and performance cure payments, which constitute payments to customers (Contra revenue);
•revenues for the reimbursement of costs incurred on behalf of managed and franchised properties;
•costs incurred on behalf of managed and franchised properties that we intend to recover over the long term;
•equity earnings (losses) from unconsolidated hospitality ventures;
•stock-based compensation expense;
•gains (losses) on sales of real estate and other;
•asset impairments; and
•other income (loss), net
We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments and eliminations to corporate and other Adjusted EBITDA.
Our board of directors and executive management team focus on Adjusted EBITDA as one of the key performance and compensation measures both on a segment and on a consolidated basis. Adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations both on a segment and on a consolidated basis. Our President and Chief Executive Officer, who is our chief operating decision maker ("CODM"), also evaluates the performance of each of our reportable segments and determines how to allocate resources to those segments, in part, by assessing the Adjusted EBITDA of each segment. In addition, the compensation committee of our board of directors determines the annual variable compensation for certain members of our management based in part on consolidated Adjusted EBITDA, segment Adjusted EBITDA, or some combination of both.
We believe Adjusted EBITDA is useful to investors because it provides investors with the same information that we use internally for purposes of assessing our operating performance and making compensation decisions and facilitates our comparison of results with results from other companies within our industry.
Adjusted EBITDA excludes certain items that can vary widely across different industries and among companies within the same industry including interest expense and benefit (provision) for income taxes, which are dependent on company specifics, including capital structure, credit ratings, tax policies, and jurisdictions in which they operate; depreciation and amortization which are dependent on company policies including how the assets are utilized as well as the lives assigned to the assets; Contra revenue which is dependent on company policies and strategic decisions regarding payments to hotel owners; and stock-based compensation expense which varies among companies as a result of different compensation plans companies have adopted. We exclude revenues for the reimbursement of costs and costs incurred on behalf of managed and franchised properties which relate to the reimbursement of payroll costs and for system-wide services and programs that we operate for the benefit of our hotel owners as contractually we do not provide services or operate the related programs to generate a profit over the terms of the respective contracts. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Therefore, we exclude the net impact when evaluating period-over-period changes in our operating results. Adjusted EBITDA includes costs incurred on behalf of our managed and franchised properties related to system-wide services and programs that we do not intend to recover from hotel owners.
A - 22

Finally, we exclude other items that are not core to our operations, such as asset impairments and unrealized and realized gains and losses on marketable securities.
Adjusted EBITDA and EBITDA are not substitutes for net income (loss) attributable to Hyatt Hotels Corporation, net income (loss), or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA and EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income (loss) generated by our business. Our management compensates for these limitations by referencing our GAAP results and using Adjusted EBITDA supplementally.
Adjusted EBITDA Margin
We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenues excluding Contra revenue and revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (Adjusted revenues). We believe Adjusted EBITDA margin is useful to investors because it provides investors the same information that the Company uses internally for purposes of assessing operating performance.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Losses) per Share (EPS)
Adjusted net income (loss) and Adjusted Diluted EPS, as we define them, are non-GAAP measures. We define Adjusted net income (loss) as net income (loss) attributable to Hyatt Hotels Corporation excluding special items, which are those items deemed not to be reflective of ongoing operations. We define Adjusted Diluted EPS as Adjusted net income (loss) per diluted share. We consider Adjusted net income (loss) and Adjusted Diluted EPS to be an indicator of operating performance because excluding special items allows for period-over-period comparisons of our ongoing operations.
Adjusted net income (loss) and Adjusted Diluted EPS are not a substitute for net income (loss) attributable to Hyatt Hotels Corporation, net income (loss), diluted earnings (losses) per share, or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as Adjusted net income (loss) and Adjusted Diluted EPS. Although we believe that Adjusted net income (loss) and Adjusted Diluted EPS can make an evaluation of our operating performance more consistent because they remove special items that are deemed not to be reflective of ongoing operations, other companies in our industry may define Adjusted net income (loss) and Adjusted Diluted EPS differently than we do. As a result, it may be difficult to use Adjusted net income (loss) or Adjusted Diluted EPS or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted net income (loss) and Adjusted Diluted EPS should not be considered as measures of the income (loss) and earnings (losses) per share generated by our business. Our management compensates for these limitations by reference to its GAAP results and using Adjusted net income (loss) and Adjusted Diluted EPS supplementally.
Adjusted Selling, General, and Administrative (SG&A) Expenses
Adjusted SG&A expenses, as we define it, is a non-GAAP measure. Adjusted SG&A expenses exclude the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted SG&A expenses assist us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis.
Comparable Owned and Leased Hotels Operating Margin
We define comparable owned and leased hotels operating margin as the difference between comparable owned and leased hotels revenues and comparable owned and leased hotels expenses. Comparable owned and leased hotels revenues is calculated by removing non-comparable hotels revenues from owned and leased hotels revenues as reported in our consolidated statements of income (loss). Comparable owned and leased hotels expenses is calculated by removing both non-comparable owned and leased hotels expenses and the impact of expenses funded through rabbi trusts from owned and leased hotels expenses as reported in our consolidated statements of income (loss). We believe comparable owned and leased hotels operating margin is useful to investors because it provides investors the same information that the Company uses internally for purposes of assessing operating performance.
A - 23

Comparable Hotels
"Comparable system-wide hotels" represents all properties we manage or franchise, including owned and leased properties, that are operated for the entirety of the periods being compared and that have not sustained substantial damage, business interruption, or undergone large scale renovations during the periods being compared or for which comparable results are not available. We may use variations of comparable system-wide hotels to specifically refer to comparable system-wide Americas full service hotels, including our wellness resorts, our select service hotels, or our all-inclusive resorts, for those properties that we manage or franchise within the Americas management and franchising segment, comparable system-wide ASPAC full service or select service hotels for those properties we manage or franchise within the ASPAC management and franchising segment, or comparable system-wide EAME/SW Asia full service or select service hotels for those properties that we manage or franchise within the EAME/SW Asia management and franchising segment. "Comparable owned and leased hotels" represents all properties we own or lease and that are operated and consolidated for the entirety of the periods being compared and have not sustained substantial damage, business interruption, or undergone large scale renovations during the periods being compared or for which comparable results are not available. Comparable system-wide hotels and comparable owned and leased hotels are commonly used as a basis of measurement in our industry. "Non-comparable system-wide hotels" or "non-comparable owned and leased hotels" represent all hotels that do not meet the respective definition of "comparable" as defined above.
Constant Dollar Currency
We report the results of our operations both on an as-reported basis, as well as on a constant dollar basis. Constant dollar currency, which is a non-GAAP measure, excludes the effects of movements in foreign currency exchange rates between comparative periods. We believe constant dollar analysis provides valuable information regarding our results as it removes currency fluctuations from our operating results. We calculate constant dollar currency by restating prior-period local currency financial results at the current period's exchange rates. These restated amounts are then compared to our current period reported amounts to provide operationally driven variances in our results.
Average Daily Rate (ADR)
ADR represents hotel room revenues, divided by the total number of rooms sold in a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in our industry, and we use ADR to assess the pricing levels that we are able to generate by customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described below.
Occupancy
Occupancy represents the total number of rooms sold divided by the total number of rooms available at a hotel or group of hotels. Occupancy measures the utilization of a hotel's available capacity. We use occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help us determine achievable ADR levels as demand for hotel rooms increases or decreases.
Revenue per Available Room (RevPAR)
RevPAR is the product of the average daily rate and the average daily occupancy percentage. RevPAR does not include non-room revenues, which consist of ancillary revenues generated by a hotel property, such as food and beverage, parking, and other guest service revenues. Our management uses RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a regional and segment basis. RevPAR is a commonly used performance measure in our industry.
RevPAR changes that are driven predominantly by changes in occupancy have different implications for overall revenue levels and incremental profitability than do changes that are driven predominantly by changes in average room rates. For example, increases in occupancy at a hotel would lead to increases in room revenues and additional variable operating costs, including housekeeping services, utilities, and room amenity costs, and could also result in increased ancillary revenues, including food and beverage. In contrast, changes in average room rates typically have a greater impact on margins and profitability as average room rate changes result in minimal impacts to variable operating costs.
Net Package ADR
Net Package ADR represents net package revenues, divided by the total number of rooms sold in a given period. Net package revenues generally include revenue derived from the sale of package revenue at all-inclusive resorts comprised of rooms revenue, food and beverage, and entertainment, net of compulsory tips paid to employees.
A - 24

Net Package ADR measures the average room price attained by a hotel, and Net Package ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. Net Package ADR is a commonly used performance measure in our industry, and we use Net Package ADR to assess the pricing levels that we are able to generate by customer group, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above.
Net Package RevPAR
Net Package RevPAR is the product of the net package ADR and the average daily occupancy percentage. Our management uses Net Package RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a regional and segment basis. Net Package RevPAR is a commonly used performance measure in our industry.
Net Financed Contracts
Net Financed Contracts represent Unlimited Vacation Club contracts signed during the period for which an initial cash down payment has been received and the remaining balance is contractually due in monthly installments over an average term of less than 4 years. The Net Financed Contract balance is calculated as the unpaid portion of membership contracts reduced by expenses related to fulfilling the membership program contracts and further reduced by an allowance for future estimated uncollectible installments. Net Financed Contract balances are not reported on our consolidated balance sheets as our right to collect future installments is conditional on our ability to provide continuous access to member benefits at ALG resorts over the contract term, and the associated expenses to fulfill the membership contracts become liabilities of the Company only after the installments are collected. We believe Net Financed Contracts is useful to investors as it represents an estimate of future cash flows due in accordance with contracts signed in the current period. At December 31, 2022, the Net Financed Contract balance not recorded on our consolidated balance sheet was $186 million.
Net Deferrals
Net Deferrals represent the change in contract liabilities associated with the Unlimited Vacation Club membership contracts less the change in deferred cost assets associated with the contracts. The contract liabilities and deferred cost assets are recognized as revenue and expense, respectively, on our consolidated statements of income (loss) over the customer life, which ranges from 3 to 25 years.
Free Cash Flow
Free cash flow represents net cash provided by operating activities less capital expenditures. We believe free cash flow to be a useful liquidity measure to us and investors to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, our ability to grow our business through acquisitions and investments, as well as our ability to return cash to shareholders through dividends and share repurchases. Free cash flow is not necessarily a representation of how we will use excess cash. Free cash flow is not a substitute for net cash provided by operating activities or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as free cash flow and management compensates for these limitations by referencing our GAAP results and using free cash flow supplementally. See our consolidated statements of cash flows in our consolidated financial statements included in our Annual Report on Form 10-K.
A - 25
EX-99.2 3 q42022supplementaldeck.htm SUPPLEMENTAL INVESTOR DECK q42022supplementaldeck
Q4 2022 Supplemental Presentation 02/16/2023 SECRETS® IMPRESSION MOXCHE Exhibit 99.2

 
DISCLAIMERS 2 NON-GAAP FINANCIAL MEASURES This presentation includes references to certain financial measures, each identified with the symbol “†”, that are not calculated or presented in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures have important limitations and should not be considered in isolation or as a substitute for measures of Hyatt Hotels Corporation’s (the “Company”) financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures, as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculations. For how we define the non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure, please refer to the Appendix at the end of this presentation. KEY BUSINESS METRICS This presentation includes references to certain key business metrics used by the Company. For how we define these metrics, please refer to the Appendix at the end of this presentation.

 
ALG MOMENTUM CONTINUES For Three Months Ended December 31, 2022 3 $43M Adjusted EBITDA† Net Package RevPAR was up 24% to 2019 for hotels in the Americas1 Management, Franchise, License, and Other Fees Revenue of $40M Signed 8.3K new membership contracts; 29% above 2019 131K Active UVC Members; up 27% to 2019 + $28M Net Deferrals $15M Net Financed Contracts + FOURTH QUARTER KEY HIGHLIGHTS $240M in revenue driven by 563K Departures Transformed business model and strong pricing delivered solid results ALG revenue and Adjusted EBITDA† included a non-cash benefit in the quarter of $23M related to expired travel credits SECRETS® PUERTO LOS CABOS GOLF & SPA RESORT 1. Information provided is based on properties managed by ALG for both the three months ended December 31, 2019 and the three months ended December 31, 2022.

 
4 Three Months Ended December 31, 2022 Year Ended December 31, 2022 USD in millions Hyatt excl. ALG   ALG Combined  Hyatt excl. ALG  ALG Combined  REVENUES: Owned and leased hotels $ 323 $ 1 $ 324 $ 1,214 $ 21 $ 1,235 Management, franchise, license, and other fees 186 40 226 662 146 808 Contra revenue (4) — (4) (30) (1) (31) Net management, franchise, license, and other fees $ 182 $ 40 $ 222 $ 632 $ 145 $ 777 Distribution and destination management — 240 240 — 986 986 Other revenues 34 33 67 136 137 273 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 703 32 735 2,506 114 2,620 Total revenues $ 1,242 $ 346 $ 1,588 $ 4,488 $ 1,403 $ 5,891 DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: Owned and leased hotels $ 237 $ 4 $ 241 $ 893 $ 23 $ 916 Distribution and destination management — 189 189 — 775 775 Depreciation and amortization 56 50 106 234 192 426 Other direct costs 41 30 71 157 123 280 Selling, general, and administrative 119 50 169 317 147 464 Costs incurred on behalf of managed and franchised properties 717 34 751 2,516 116 2,632 Direct and selling, general, and administrative expenses $ 1,170 $ 357 $ 1,527 $ 4,117 $ 1,376 $ 5,493 Net gains (losses) and interest income from marketable securities held to fund rabbi trusts 14 — 14 (75) — (75) Equity earnings (losses) from unconsolidated hospitality ventures 11 — 11 5 — 5 Interest expense (34) — (34) (150) — (150) Gains (losses) on sales of real estate and other 13 — 13 263 — 263 Asset impairments (2) (17) (19) (11) (27) (38) Other income (loss), net 27 (14) 13 (10) (30) (40) INCOME (LOSS) BEFORE INCOME TAXES $ 101 $ (42) $ 59 $ 393 $ (30) $ 363 BENEFIT (PROVISION) FOR INCOME TAXES1 244 (9) 235 115 (23) 92 NET INCOME (LOSS) $ 345 $ (51) $ 294 $ 508 $ (53) $ 455 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 345 $ (51) $ 294 $ 508 $ (53) $ 455 ALG CONTRIBUTION TO HYATT CONSOLIDATED STATEMENT OF INCOME (LOSS) 1. ALG column represents ALG non-US tax expense All information and data is presented and provided solely for informational purposes to enable investors to compare performance on a consistent basis.

 
5 Three Months Ended December 31, 2022 Year Ended December 31, 2022 USD in millions Hyatt excl. ALG   ALG Combined  Hyatt excl. ALG ALG Combined  Net income (loss) attributable to Hyatt Hotels Corporation $ 345 $ (51) $ 294 $ 508 $ (53) $ 455 Interest expense 34 — 34 150 — 150 (Benefit) provision for income taxes1 (244) 9 (235) (115) 23 (92) Depreciation and amortization 56 50 106 234 192 426 EBITDA† $ 191 $ 8 $ 199 $ 777 $ 162 $ 939 Contra revenue 4 — 4 30 1 31 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (703) (32) (735) (2,506) (114) (2,620) Costs incurred on behalf of managed and franchised properties 717 34 751 2,516 116 2,632 Equity (earnings) losses from unconsolidated hospitality ventures (11) — (11) (5) — (5) Stock-based compensation expense 12 2 14 52 9 61 Gains (losses) on sales of real estate and other (13) — (13) (263) — (263) Asset impairments 2 17 19 11 27 38 Other (income) loss, net (27) 14 (13) 10 30 40 Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA† 17 — 17 55 — 55 Adjusted EBITDA† $ 189 $ 43 $ 232 $ 677 $ 231 $ 908 Net Deferral Activity Increase in Deferred Revenue $ — $ 52 52 $ — $ 199 199 Increase in Deferred Costs — (24) (24) — (105) (105) Net Deferrals $ — $ 28 $ 28 $ — $ 94 $ 94 Net Financed Contracts $ — $ 15 $ 15 $ — $ 63 $ 63 ALG CONTRIBUTION TO HYATT ADJUSTED EBITDA† IN Q4 2022 1. ALG column represents ALG non-US tax expense All information and data is presented and provided solely for informational purposes to enable investors to compare performance on a consistent basis.

 
ALG PERFORMANCE BY QUARTER IN 2022  6 Q1 Q2 Q3 Q4 Full Year Net Package RevPAR (Americas) $ 214.32 $ 204.51 $ 179.42 $ 200.17 $ 199.28 Net Package RevPAR (Europe) $ 71.03 $ 80.13 $ 134.66 $ 87.08 $ 100.57 Net Package RevPAR (Total) $ 189.46 $ 162.72 $ 162.98 $ 174.38 $ 171.02 Unlimited Vacation Club Signed Contracts 7,805 8,466 9,241 8,267 33,779 Departures 579,110 744,431 681,552 563,067 2,568,160 USD in millions Owned and leased hotels revenues $ — $ 4 $ 16 $ 1 $ 21 Management, franchise, license, and other fees 30 36 40 40 146 Other revenues 34 33 37 33 137 Distribution and destination management revenues 246 256 244 240 986 ALG Adjusted Revenues† $ 310 $ 329 $ 337 $ 314 $ 1,290 Owned and leased hotels expenses $ 2 $ 7 $ 10 $ 4 $ 23 Other direct costs 25 34 34 30 123 Distribution and destination management expenses 194 206 186 189 775 Adjusted SG&A† 33 28 29 48 138 ALG Adjusted EBITDA† $ 56 $ 54 $ 78 $ 43 $ 231 Increase in Deferred Revenue $ 49 $ 52 $ 46 $ 52 $ 199 Increase in Deferred Costs (25) (27) (29) (24) (105) Net Deferrals $ 24 $ 25 $ 17 $ 28 $ 94 Net Financed Contracts $ 7 $ 15 $ 26 $ 15 $ 63 All information and data is presented and provided solely for informational purposes to enable investors to compare performance on a consistent basis.

 
Appendix 7 SECRETS® AKUMAL RIVIERA MAYA

 
8 DEFINITIONS Adjusted Earnings Before Interest Expense, Taxes, Depreciation, and Amortization (Adjusted EBITDA) and EBITDA We use the terms Adjusted EBITDA and EBITDA throughout this supplemental presentation. Adjusted EBITDA and EBITDA, as we define them, are non-GAAP measures. We define consolidated Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude the following items: • interest expense; • benefit (provision) for income taxes; • depreciation and amortization; • amortization of management and franchise agreement assets and performance cure payments, which constitute payments to customers (Contra revenue); • revenues for the reimbursement of costs incurred on behalf of managed and franchised properties; • costs incurred on behalf of managed and franchised properties that we intend to recover over the long term; • equity earnings (losses) from unconsolidated hospitality ventures; • stock-based compensation expense; • gains (losses) on sales of real estate and other; • asset impairments; and • other income (loss), net We calculate consolidated Adjusted EBITDA by adding the Adjusted EBITDA of each of our reportable segments and eliminations to corporate and other Adjusted EBITDA. Our board of directors and executive management team focus on Adjusted EBITDA as one of the key performance and compensation measures both on a segment and on a consolidated basis. Adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations both on a segment and on a consolidated basis. Our President and Chief Executive Officer, who is our chief operating decision maker ("CODM"), also evaluates the performance of each of our reportable segments and determines how to allocate resources to those segments, in part, by assessing the Adjusted EBITDA of each segment. In addition, the compensation committee of our board of directors determines the annual variable compensation for certain members of our management based in part on consolidated Adjusted EBITDA, segment Adjusted EBITDA, or some combination of both. We believe Adjusted EBITDA is useful to investors because it provides investors with the same information that we use internally for purposes of assessing our operating performance and making compensation decisions and facilitates our comparison of results with results from other companies within our industry. Adjusted EBITDA excludes certain items that can vary widely across different industries and among companies within the same industry including interest expense and benefit (provision) for income taxes, which are dependent on company specifics, including capital structure, credit ratings, tax policies, and jurisdictions in which they operate; depreciation and amortization which are dependent on company policies including how the assets are utilized as well as the lives assigned to the assets; Contra revenue which is dependent on company policies and strategic decisions regarding payments to hotel owners; and stock-based compensation expense which varies among companies as a result of different compensation plans companies have adopted. We exclude revenues for the reimbursement of costs and costs incurred on behalf of managed and franchised properties which relate to the reimbursement of payroll costs and for system-wide services and programs that we operate for the benefit of our hotel owners as contractually we do not provide services or operate the related programs to generate a profit over the terms of the respective contracts. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Therefore, we exclude the net impact when evaluating period-over-period changes in our operating results. Adjusted EBITDA includes costs incurred on behalf of our managed and franchised properties related to system-wide services and programs that we do not intend to recover from hotel owners. Finally, we exclude other items that are not core to our operations, such as asset impairments and unrealized and realized gains and losses on marketable securities. Adjusted EBITDA and EBITDA are not substitutes for net income (loss) attributable to Hyatt Hotels Corporation, net income (loss), or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA and EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income (loss) generated by our business. Our management compensates for these limitations by referencing our GAAP results and using Adjusted EBITDA supplementally.

 
9 DEFINITIONS Adjusted Selling, General, and Administrative (SG&A) Expenses, Adjusted SG&A expenses, as we define it, is a non-GAAP measure. Adjusted SG&A expenses exclude the impact of deferred compensation plans funded through rabbi trusts and stock-based compensation expense. Adjusted SG&A expenses assist us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis. Comparable Hotels "Comparable system-wide hotels" represents all properties we manage or franchise, including owned and leased properties, and that are operated for the entirety of the periods being compared and that have not sustained substantial damage, business interruption, or undergone large scale renovations during the periods being compared or for which comparable results are not available. We may use variations of comparable system-wide hotels to specifically refer to comparable system-wide Americas full service hotels, including our wellness resorts, our select service hotels, or our all-inclusive resorts, for those properties that we manage or franchise within the Americas management and franchising segment, comparable system-wide ASPAC full service or select service hotels for those properties we manage or franchise within the ASPAC management and franchising segment, or comparable system-wide EAME/SW Asia full service or select service hotels for those properties that we manage or franchise within the EAME/SW Asia management and franchising segment. "Comparable owned and leased hotels" represents all properties we own or lease and that are operated and consolidated for the entirety of the periods being compared and have not sustained substantial damage, business interruption, or undergone large scale renovations during the periods being compared or for which comparable results are not available. Comparable system-wide hotels and comparable owned and leased hotels are commonly used as a basis of measurement in our industry. "Non-comparable system-wide hotels" or "non-comparable owned and leased hotels" represent all hotels that do not meet the respective definition of "comparable" as defined above. Occupancy represents the total number of rooms sold divided by the total number of rooms available at a hotel or group of hotels. Occupancy measures the utilization of a hotel's available capacity. We use occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help us determine achievable ADR levels as demand for hotel rooms increases or decreases. Revenue per Available Room (RevPAR) is the product of the average daily rate and the average daily occupancy percentage. RevPAR does not include non-room revenues, which consist of ancillary revenues generated by a hotel property, such as food and beverage, parking, and other guest service revenues. Our management uses RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a regional and segment basis. RevPAR is a commonly used performance measure in our industry. RevPAR changes that are driven predominantly by changes in occupancy have different implications for overall revenue levels and incremental profitability than do changes that are driven predominantly by changes in average room rates. For example, increases in occupancy at a hotel would lead to increases in room revenues and additional variable operating costs, including housekeeping services, utilities, and room amenity costs, and could also result in increased ancillary revenues, including food and beverage. In contrast, changes in average room rates typically have a greater impact on margins and profitability as average room rate changes result in minimal impacts to variable operating costs. Net Package RevPAR is the product of the net package ADR and the average daily occupancy percentage. Our management uses Net Package RevPAR to identify trend information with respect to room revenues from comparable properties and to evaluate hotel performance on a regional and segment basis. Net Package RevPAR is a commonly used performance measure in our industry. Net Financed Contracts represent Unlimited Vacation Club contracts signed during the period for which an initial cash down payment has been received and the remaining balance is contractually due in monthly installments over an average term of less than 4 years. The Net Financed Contract balance is calculated as the unpaid portion of membership contracts reduced by expenses related to fulfilling the membership program contracts and further reduced by an allowance for future estimated uncollectible installments. Net Financed Contract balances are not reported on our consolidated balance sheets as our right to collect future installments is conditional on our ability to provide continuous access to member benefits at ALG resorts over the contract term, and the associated expenses to fulfill the membership contracts become liabilities of the Company only after the installments are collected. We believe Net Financed Contracts is useful to investors as it represents an estimate of future cash flows due in accordance with contracts signed in the current period. At December 31, 2022, the Net Financed Contract balance not recorded on our consolidated balance sheet was $186 million. Net Deferrals represent the change in contract liabilities associated with the Unlimited Vacation Club membership contracts less the change in deferred cost assets associated with the contracts. The contract liabilities and deferred cost assets are recognized as revenue and expense, respectively, on our consolidated statements of income (loss) over the customer life, which ranges from 3 to 25 years.

 
10 RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (CONT.) Hyatt Hotels Corporation Reconciliation of Non-GAAP Financial Measure: Reconciliation of Apple Leisure Group Segment SG&A Expenses to Segment Adjusted SG&A Expenses Results of operations as presented on the consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in SG&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no net impact to our earnings (losses). SG&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this measure excluding the impact of our rabbi trust investments and stock-based compensation expense. (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 ALG Segment SG&A expenses $ 37 $ 31 $ 29 $ 50 $ 147 Less: rabbi trust impact — — — — — Less: stock-based compensation expense (4) (3) — (2) (9) ALG Segment Adjusted SG&A† expenses $ 33 $ 28 $ 29 $ 48 $ 138

 
11 RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (CONT.) Hyatt Hotels Corporation Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income (Loss) Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Net income (loss) attributable to Hyatt Hotels Corporation $ (73) $ 206 $ 28 $ 294 $ 455 Interest expense 40 38 38 34 150 (Benefit) provision for income taxes 2 106 35 (235) (92) Depreciation and amortization 119 105 96 106 426 EBITDA† $ 88 $ 455 $ 197 $ 199 $ 939 Contra revenue 9 9 9 4 31 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (540) (640) (705) (735) (2,620) Costs incurred on behalf of managed and franchised properties 556 628 697 751 2,632 Equity (earnings) losses from unconsolidated hospitality ventures 9 (1) (2) (11) (5) Stock-based compensation expense 28 12 7 14 61 (Gains) losses on sales of real estate and other — (251) 1 (13) (263) Asset impairments 3 7 9 19 38 Other (income) loss, net 10 19 24 (13) 40 Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 6 17 15 17 55 Adjusted EBITDA† $ 169 $ 255 $ 252 $ 232 $ 908

 
12 RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (CONT.) Hyatt Hotels Corporation Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income (Loss) Attributable to Apple Leisure Group Segment to Segment EBITDA and Segment EBITDA to Segment Adjusted EBITDA (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Net income (loss) attributable to ALG Segment $ (9) $ (6) $ 13 $ (51) $ (53) Interest expense — — — — — (Benefit) provision for income taxes1 3 4 7 9 23 Depreciation and amortization 55 47 40 50 192 ALG Segment EBITDA† $ 49 $ 45 $ 60 $ 8 $ 162 Contra revenue — — 1 — 1 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (29) (26) (27) (32) (114) Costs incurred on behalf of managed and franchised properties 29 25 28 34 116 Equity (earnings) losses from unconsolidated hospitality ventures — — — — — Stock-based compensation expense 4 3 — 2 9 (Gains) losses on sales of real estate and other — — — — — Asset impairments 2 — 8 17 27 Other (income) loss, net 1 7 8 14 30 Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA — — — — — ALG Segment Adjusted EBITDA† $ 56 $ 54 $ 78 $ 43 $ 231 1. Represents ALG non-US tax expense

 
13 RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (CONT.) Hyatt Hotels Corporation Reconciliation of Non-GAAP Financial Measure: Reconciliation of Apple Leisure Group Segment Total Revenues to Segment Adjusted Revenues (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 ALG Segment Total Revenues $ 339 $ 355 $ 363 $ 346 $ 1,403 Add: Contra revenue — — 1 — 1 Less: Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (29) (26) (27) (32) (114) ALG Segment Adjusted Revenues† $ 310 $ 329 $ 337 $ 314 $ 1,290

 
14